Tesla is finally making its official launch into Chile on January 31st with the opening of its first retail store in the country. Tesla is inviting Chileans to celebrate the arrival of its electric vehicles at an evening launch event at the Parque Arauco shopping mall in Santiago. This initial foray into Chile comes six months after Chinese EV maker BYD first entered the market. So is Tesla too late to the party?
Chile represents an attractive new growth opportunity for Tesla in South America. The country boasts most stable economy, sizeable middle class, investment in renewable energy, and EV-friendly policies. Chile aims to go carbon neutral by 2050. However, BYD has already made inroads by partnering with local dealers and touting the affordability of its electric models compared to Tesla.
Tesla will look to leverage its aspirational brand appeal and globally-recognized vehicles like the Model 3 and Model Y in Chile. But after lagging behind in entering the market, Tesla will need to play catch-up. A single retail store may not be enough to gain substantial market share against the head start BYD has built along with other affordable EV options for Chilean consumers.
As a high-growth company, Tesla cannot afford to ignore any promising markets for long, especially one located so close to home in the U.S. BYD have had six months to win over customers. Tesla will need to significantly ramp up its presence with more retail and service centers if it wants to make a real run at Chile and not just cede the market to competitors. A flashy store opening is nice, but substantive commitment will be required.